CNL Healthcare Completes 9-Property Senior Living Portfolio Expansion for $225 Million

CNL Healthcare Properties announced today it has acquired seven senior housing communities in Texas and one in Illinois from developer South Bay Partners, Ltd., for $187.2 million. It is also expanding through a ninth community that will be developed through a joint venture between CNL and South Bay Partners. 

CNL Healthcare, an Orlando-based non-traded real estate investment trust, is a current investor in senior housing, medical office, acute care, post-acute care and other income-producing real estate. 

Through the acquisitions and development announced Wednesday, the REIT is investing a total of $225 million in the sector. 


The Texas and Illinois properties will be managed by JEA Senior Living, Harbor Retirement Associates, Integrated Senior Living and an affiliate of South Bay Partners, and have a total of 798 units and 72 skilled nursing beds. Through the joint venture with South Bay, CNL will develop a $38.2 million independent living community in Katy, Texas. South Bay will manage the community upon completion. 

The acquired properties include Mansfield, Texas-based independent living community Watercrest at Mansfield and assisted living and memory care facility Isle at Watercrest – Mansfield; Bryan, Texas-based Watercrest at Bryan, an independent living community, and Wartercrest – Bryan, an assisted living and skilled nursing facility; Isle at Cedar Ridge, an assisted living and skilled nursing facility in Cedar Park, Texas; Legacy Ranch Alzheimer’s Special Care Center, a memory care community in Midland, Texas; The Springs Alzheimer’s Special Care Center, a memory care facility in San Angelo, Texas; and HarborChase of Plainfield, an assisted living and memory care community in Plainfield, Ill. 

The company said the newest investments will reinforce its operator relationships. 


“Our targeted investment in these communities further allows us to deepen our relationships with dynamic, leading operators” said CNL CEO Stephen H. Mauldin in a written release. “We have developed great confidence in the capabilities of JEA Senior Living, Harbor Retirement Associates and Integrated Senior Living to create and sustain engaging environments and communities where residents thrive.”

JEA Senior Living will manage Isle at Watercrest – Bryan, Isle at Cedar Ridge, Legacy Ranch and The Springs. Harbor Retirement Associates will manage HarborChase at Plainfield. Integrated Senior Living will manage Isle at Watercrest – Mansfield and Watercrest at Bryan. Watercrest at Mansfield will be managed by an affiliate of South Bay Partners. 

CNL Healthcare Properties has completed several senior housing portfolio acquisitions in 2014; in February, the company acquired four Washington communities for $88 million. In December, it acquired a 12-property senior living portfolio for $302 million. 

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Written by Emily Study

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